We buy everything online these days, so why not a brand-new home? It can seem like a daunting process, especially given that the purchase of a home is often the largest (and most expensive) single-ticket item that most of us buy in our lifetime. However, buying a new home online can be easier than you think. Here are the five easy steps to buying a new home online.
Dream and Discover
The journey to buying a brand-new home online begins with dreaming and discovering. This crucial first step involves envisioning your ideal living space and exploring the possibilities available in the new construction market. Start by creating a wish list of features you desire in your new home, such as the number of bedrooms and bathrooms, square footage, architectural style, (such as Craftsman, Cape Cod, and Farmhouse), as well as specific amenities. Consider your current and future needs, factoring in aspects like family size, work-from-home requirements, and lifestyle preferences.
Also: Consult the NewHomeSource New Home Glossary to familiarize yourself with terms you are bound to encounter along the way.
Next, research different locations that align with your goals. Do you need to relocate or do you want to remain in your current area? Look into factors such as school districts, proximity to work, local amenities, and community atmosphere. Online tools and real estate websites can provide valuable insights into various neighborhoods and developments. Virtual tours and 3D renderings offered by builders via sites such as UTour can give you a sense of the layout and design of potential homes.
During this phase, it's also essential to set a realistic budget. Consider not only the purchase price but also additional costs such as property taxes, homeowners’ association fees, and potential upgrades. Online mortgage calculators can help you estimate monthly payments and determine how much house you can afford. Remember that new construction homes may come with a premium price tag compared to existing homes, but they also offer the latest designs, energy-efficient features, and the ability to customize to your preferences.
Shop and Prepare
With your dreams defined and discoveries made, it's time to shop for your new home and prepare for the purchase process. Start by exploring online listings of new construction homes in your desired areas — NewHomeSource is a great place to begin. Many builders now offer comprehensive websites showcasing their available floor plans, communities, and inventory homes. Take advantage of virtual tours, 360-degree views, and detailed floor plans to get a feel for each property.
As you browse, create a shortlist of potential homes that meet your criteria. Pay attention to the builder's reputation, warranty offerings, and included features. Research customer reviews and check the builder's track record for completing projects on time and within budget. Don't hesitate to reach out to builders directly through their online platforms to ask questions about specific properties or customization options.
While shopping, it's crucial to prepare for the financial aspects of buying a new home. Get pre-approved for a mortgage to understand your exact budget and strengthen your position as a serious buyer. Many lenders now offer online pre-approval processes, making it convenient to complete this step from home.
Virtual Visits and Due Diligence
Once you've narrowed down your options, it's time to conduct virtual visits and perform due diligence on your potential new home. Many builders now offer live video tours or detailed pre-recorded walkthroughs of model homes and available properties. Take advantage of these virtual visits to get a better sense of the space, finishes, and overall feel of the home. Don't hesitate to ask for additional photos or videos of specific areas.
During these virtual visits, pay close attention to the quality of construction, the layout of the rooms, and how well the space aligns with your needs. Take notes and screenshots to compare different properties. If possible, schedule a live video chat with the builder's representative to ask questions in real-time and get a more personalized tour of the property.
As part of your due diligence, thoroughly review all available documents related to the property and the builder. This includes the purchase agreement, homeowners’ association rules, and any warranties or guarantees offered. Many of these documents can be shared and reviewed online.
Customize and Contract
With your chosen home selected, it's time to customize your new space and move forward with the contract. Many builders offer online design centers where you can virtually select finishes, upgrades, and options for your new home. These tools often provide 3D renderings of how your choices will look in the actual space, helping you make informed decisions about everything from flooring to cabinet styles.
As you customize, keep track of the costs associated with each upgrade. It's easy to get carried away with options, so refer to your budget regularly. Some builders offer virtual meetings with design consultants who can guide you through the selection process and help you prioritize upgrades that add the most value to your home.
Once you've finalized your selections, it's time to review and sign the contract. Many builders now use electronic signature platforms, allowing you to complete this step entirely online. Before signing, carefully review all terms and conditions, including the timeline for construction, contingencies, and any clauses related to potential delays or changes. If you're working with a lawyer, have them review the contract as well to ensure your interests are protected.
Close and Connect
The final step in buying your brand-new home online is closing the deal and connecting with your new community. Many aspects of the closing process can now be completed virtually, including document reviews, final walkthroughs, and the closing itself. Work with your lender, title company, and builder to coordinate a smooth online closing process.
Before the closing, conduct a final virtual walkthrough of your new home to ensure all agreed-upon work has been completed and that the property meets your expectations. Use video conferencing to go through the home with the builder's representative, documenting any issues that need to be addressed.
After closing, start connecting with your new community, even if you're not moving in immediately. Many new developments have online forums or social media groups where residents can interact. Join these platforms to start meeting neighbors, learning about local events, and getting tips about the area. Some builders also offer virtual homeowner orientations, where you can learn about the features of your new home and how to maintain them properly.
By following these steps, you can successfully navigate the process of buying a brand-new home online, from initial dreaming to final closing. While the process may be virtual, you will still experience all the excitement and pride that comes with owning a home of your own.
Erin Nicks
Erin Nicks has written for various publications for more than 20 years. She has covered new home construction for industry-leading websites and publications, such as Livabl, ARCHITECT, Multifamily Executive, and Builder Magazine.